First time buying bitcoin?

Some general advice I give my children:

I am not your financial advisor, but these are the rules I live by, and what I tell my children.

1. Before buying bitcoin, establish a budget, and live below your means (make more money than you spend). Consider living more frugally, cutting something wasteful out of your regular expenses. The last thing you want to do is to have to sell your bitcoin at the wrong time.
2. Bitcoin is very volatile. There have been numerous 80+% crashes in bitcoin over its 10-year history. Expect to be upside-down during your investment. Invest only money you don’t need for several years, or even longer. Consider bitcoin a 5 to 10-year investment that you won’t touch.
3. Start by buying a small amount of bitcoin.
4. I prefer the dollar-cost-average (DCA) method of investing in bitcoin. It’s the slow-and-steady wins the race model of investing.
   • If you’re a young person with a small income, consider a $10 or $20 weekly buy.
   • If you have more means, consider larger amounts, but make the amount a % of your monthly excess (savings), and do regular buys.
   • A very handy tool: dcabtc.com to model how much you would have if you had invested specific amounts of $ buying bitcoin on a regular time-interval over the past few year(s).

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